UNCLAIMED MONEY IS PILING UP

In a country where deficits and poverty are rampant, unclaimed money is an irony — but a huge reality. Be it un-banked cheques, deposits with banks, finance companies and post-offices, or investment in tax saving schemes and life insurance policies, the unclaimed sums can be significant.

LIC had, for instance, in response to an application filed under the Right to Information Act, stated that as many as 1,80,031 policies were lying unclaimed with the Corporation even after the maturity period.

The Corporation, however, did not disclose the amount deposited against these policies by the policyholders.

NO COMMUNICATION

Why does this happen? “It's because the insured fails to keep his near and dear ones informed about his/her investment. Many people have no clue that they are a beneficiary or even that a life insurance policy exists. It does happen and fairly often,” says Mr P. Mohankumar, the Principal Officer and Managing Director, Link-K Insurance Broker Co (P) Ltd.

Citing an instance, he said a friend took a life cover for Rs 50 lakh. He moved to the US, where he passed away. His wife relocated to India after his death. Many months later, when she went through the transactions in his pass book, she noticed that there were payouts towards insurance premium. The policy documents were missing. But somehow she managed to get the claim.

“It may not always be easy, especially if the premium against any policy is discontinued continuously for five years. The policy lapses and cannot be revived,” he emphasised.

“Such secrecy is uncalled for, especially when it is life insurance cover,” he said, and pointed out that in the case of a car accident or health services, ‘you are the claimant', but when it comes to life ‘you aren't the one to pay the final bills. It will probably be your beneficiary!'

Emphasising the need for maintaining proper record of one's investment and the need to keep close family members in the know of such investment, Mr Mohankumar said “it is also important to know your agent.”

SOURCE: http://www.thehindubusinessline.com/industry-and-economy/banking/article3353429.ece